O Congress has increasingly debated related topics to strategies for reduction of greenhouse gases, as is the case with bills that seek to create the Regulated Carbon Market (Bill No. 412/2022) and Geological Carbon Capture and Storage (Bill No. 1.425/2022), in addition to proposing regulatory frameworks such as hydrogen, offshore wind, Among others.
Isabella Morbach, lawyer and co-founder of CCS Brazil, a non-profit organization that aims to stimulate activities linked to CCS (Carbon Capture and Storage) in the country, states that this is a unique moment for the development of national policies.
“We have the opportunity to discuss and build in a simultaneous and integrated way with public policies and regulatory frameworks, making technological routes compatible with instruments to encourage their development, such as the Regulated Carbon Market”, he highlights.
She explains that, in this context, some common issues stand out in the debate on the topic and need to be clarified, such as which solutions will generate carbon reduction or removal certificates e how these accountings will be made.
“Many of these doubts will be addressed when the regulations are published, but they need to start being thought about now, not only so that Brazil can adapt to international parameters, but also to adapt the interaction between the different activities”, he states.
Among these parameters, Isabela cites carbon credit programs and methodologies in the voluntary market already consolidated in international market, as for VCS (Verified Carbon Standard) certification by VERRA – responsible for one of the main carbon credit programs in the world and which provides for a series of requirements for certification, including what must be provided or foreseen in law and regulations so that for a project to be certifiable and for it to be possible to sell carbon credits on the voluntary market.
“Currently, there are 500 million credits transacted globally, a market that generates around US$2 billion a year”, she said, adding that:
“Despite the value, this represents a very small percentage of global emissions currently, especially coming from renewable energy source projects and projects to reduce emissions from deforestation and forest degradation. As you can see, there is still a huge market to be explored and Brazil cannot be left out of this movement”, he highlights.
Finally, Isabela also points out that it is important to country be in contact with the companies and countries that build these markets and methodologies for creating necessary regulations and legislation.
“This is essential because it is necessary to create clear regulations that help create the necessary legal certainty, both for the voluntary and regulated markets, so that more companies can be interested in this market and can create projects that are in line with standards. Being aware of these global trends and including the latest developments and methodologies in this market in legislation can make the difference in obtaining financing and boosting this sector”, she concludes.
